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New Car Lease in Israel: What Everyone Ought to Know
You owe it to yourself to consider a new car lease for your next new or late model car, and here's why.
Cars in Israel are:
- Expensive
- Carry high taxation
- Depreciate rapidly
- Need to be in the best working condition possible for security reasons
Universally, people are transforming the age-old practice of financing and regarding cars as assets, to viewing them as they really are: depreciating expenditures. Remember your economics classes; finance stable or appreciating assets, lease depreciating assets.
With depreciating assets, the less cash put at risk the better; leasing accomplishes this by offering lower down and monthly payments, while requiring you to only pay for the part of the car that you will use.
Be advised, however; much of what you see advertised today in Israel is either not a real lease at all or, if it is genuine, it has end-of-contract stipulations that are foreign to the western approach.
You are looking for an "western style closed-end" contract, as offered abroad, Its attributes are described in this link. Do not settle for the imitations offered at the dealer level.
We Can Relate
iAnglo is a niche company assisting new olim and English-speaking persons living in, or moving to Israel. As this short video explains, we can relate to your reservations and the tendency to feel a bit overwhelmed by it all, since we experienced exactly the same apprehensions upon our arrival. Our specialized service will be a big asset to you.
Leasing - Why it Makes Sense Today
Before describing the benefits, permit us to address some reservations persons may associate to this financial alternative. Leasing its Perceived Black Eye is a good place to start. Maybe some of the personal concerns you have will be discussed there.
Depreciation protection - This is the number-one reason to consider this type of finance plan. Cars depreciate rapidly, and new cars faster than used. We devoted a full page as to why some depreciation occurs artificially it is actually engineered into the car from the beginning. Now, this impediment is removed for you because the lessor retains ownership; therefore, the depreciation is theirs to absorb.
The contract parameters (number of months - expected km) will be set at the beginning. You enjoy full use of their property until you return the car at contract's end.
The car market can and does fluctuate, but this will not affect you. You will enjoy a fixed monthly cost, and at the end you will have the option to purchase at a predetermined price (with cash or finance), sign a new contract for another car, or walk away/abandon. And if you feel that you will not achieve equity, please read the page we call "the Elephant in the room that no one talks about".
Less money per month - This feature is second, but is the number-one customer-stated reason consumers consider this finance alternative: affordability.
This savings occurs because you are using, and therefore paying, only for the portion of the vehicle that you will use, which is usually between 40 to 50%.
Mechanical Breakdowns - Most new cars are covered by the manufacturer for 100k km or 3 years, whichever occurs first. Used cars are covered by the remaining factory warranty and a 1 year warranty for major components.
Tax Benefits - We are not tax consultants, so we suggest that you contact your tax adviser to see what, if any, tax benefits you may take advantage of.
We're sure you have more questions than can be addressed on a web page. If you will complete the form "apply online" yellow button at the top on the right of this page, we will contact you. Everybody takes away something from our consultations, even if in the end they do not use our services.
Used and New Car Lease Summary
If your primary goal is a lower payment, but you prefer to own, you have an alternative to a new car lease. It's a purchase program that offers lower monthly payments. It's called LAP "Lease Alternative Purchase" and you can learn more about it by clicking the link.
Allow us to provide you with a quiet confidence that all your automobile acquisition options have been thoroughly explained, leaving "no stone unturned," so to speak, just as we did for these folks who appear on our Customer Referral Page.